Interest free loan

Mohd. Muez (Senior Executive in EY) (122 Points)

22 March 2014  
I have heard that to avoid clubbing provisions, gift provision u/s 56(2)(vii) for taking benefit of other's exemption limit - one should give interest free loan rather than gifting money. but pls tell me can i give interst free loan to anybody or is there any category of persons to whom interest free loan can be given.